In which year did the Indira Gandhi Government devalue the India Rupee?
A1956
B1966
C1978
D1970
Answer:
B. 1966
Read Explanation:
India devalued its currency on 6th June, 1966 as independent India faced its first balance of payment crisis.
Yes, the statement is accurate.
India devalued its currency on June 6th, 1966. This was indeed the first time independent India faced a significant balance of payments crisis.
The devaluation of the rupee on June 6, 1966, saw its value decrease significantly (by around 57%) against the US dollar, from ₹4.76 to ₹7.50 per dollar.
The 1966 devaluation is considered by some to have been a failed attempt at liberalization, as the anticipated foreign aid did not fully materialize, and the devaluation led to increased inflation without a significant long-term improvement in the external economic situation.